It was no surprise given England's abject performance against a team from a country of just 300,000 and with no professional teams of their own.
Iceland won 2-1 and that after Wayne Rooney gave the Three Lions a 1-0 lead on just four minutes.
It goes down as one of the biggest upsets in World football and ranks up there with England's shock defeat to the USA in the World Cup of 1950.
Hodgson's coaching staff headed by Ray Lewington will also be leaving.
It brings to an end a four year stint and despite winning all 10 group games these Euros will go down in history as a huge embarrasment to the English game.